Options Insight: How to Trade Deere Ahead of Earnings

The video discusses current trends in the oil market, highlighting a rally and significant call buying activity in the US Oil Fund (USO), suggesting bullish sentiment. It also analyzes Deere's stock, which has underperformed but shows potential for a short-term upside based on options market predictions. A specific trading strategy involving a call spread is proposed, offering a favorable risk-reward ratio.

What is the current sentiment in the oil market as discussed in the video?

• Neutral, with no significant movement expected

• Uncertain, with mixed signals from the market

• Bullish, with significant call buying indicating a rally

• Bearish, with expectations of declining prices

Which fund is mentioned in relation to the oil market activity?

• Vanguard Energy Fund

• US Oil Fund (USO)

• SPDR S&P Oil & Gas ETF

• iShares Global Energy ETF

What is the expected movement in Deere & Company's stock price according to the options market?

• A movement of about 4%

• An increase of 20%

• A decrease of 10%

• No significant change

What is the main focus of the trading strategy discussed for Deere & Company?

• A dividend reinvestment plan

• A short-selling strategy

• A long-term investment strategy

• A short-dated call spread

What is the potential reward-to-risk ratio mentioned for the trading strategy on Deere & Company?

• Four to one

• One to one

• Two to one

• Three to one